Some of Britain's biggest retailers are launching a credit union in a bid to take on controversial payday loan firms which charge hefty interest rates, it was reported today.

New Look and Next are among some of the high street chains which have reportedly signed up to RetailCure, which is set to be launched later this year.

Veteran retailer John Lovering, who has led buyouts of companies including Debenhams, Homebase and Somerfield, will chair the organisation.

He told Sky News: "The industry feels that we have to find a way of providing a source of cheap, reliable credit for our people.

"The three million in retail and the nearly five million in the wider industry do have a need for low-cost, value-for-money, short-term borrowing facilities, and that's what we as an industry are trying to provide."

Payday lenders have proliferated on Britain's high street in recent years and can charge interest of up to 5,000% per annum.

But they have been heavily criticised for their sky-high interest rates, which some claim are tempting vulnerable people into a spiral of debt.

The Archbishop of Canterbury, the Most Rev Justin Welby, waded in to the row last year by saying he wanted to "compete" payday loan firm Wonga out of business.

But the comments sparked embarrassment when it was later revealed that the Church of England's pension fund invested indirectly in Wonga.

Earlier this week the Church of England unveiled a new scheme to pilot a credit union network in three of its dioceses.

Those behind RetailCure say they believe it will ultimately become Britain's biggest credit union by dramatically undercutting payday loan firms.

People who borrow £400 over 30 days from a payday loan firm are stung with an interest fee of around £127, while the same loan would cost just £8 from the credit union.

The scheme is expected to charge interest from roughly 7% to nearly 28% depending upon the borrower's credit history and hopes to launch in November.

Comments (6)

So the retailers, who are responsible for a large percentage of people's debts, are going to be lending money to those that are already in debt, therefore making even more money off them........isn't that nice of them

So the retailers, who are responsible for a large percentage of people's debts, are going to be lending money to those that are already in debt, therefore making even more money off them........isn't that nice of themDilligaf2010

Dilligaf2010 wrote:
So the retailers, who are responsible for a large percentage of people's debts, are going to be lending money to those that are already in debt, therefore making even more money off them........isn't that nice of them

Did you miss this "People who borrow £400 over 30 days from a payday loan firm are stung with an interest fee of around £127, while the same loan would cost just £8 from the credit union."? If you want to find out more about these organisations you could always go into the Coastal Credit Union branch in Boscombe.

[quote][p][bold]Dilligaf2010[/bold] wrote:
So the retailers, who are responsible for a large percentage of people's debts, are going to be lending money to those that are already in debt, therefore making even more money off them........isn't that nice of them[/p][/quote]Did you miss this "People who borrow £400 over 30 days from a payday loan firm are stung with an interest fee of around £127, while the same loan would cost just £8 from the credit union."? If you want to find out more about these organisations you could always go into the Coastal Credit Union branch in Boscombe.breamoreboy

Dilligaf2010 wrote:
So the retailers, who are responsible for a large percentage of people's debts, are going to be lending money to those that are already in debt, therefore making even more money off them........isn't that nice of them

Your not The sharpest tool in the box then are you ?

[quote][p][bold]Dilligaf2010[/bold] wrote:
So the retailers, who are responsible for a large percentage of people's debts, are going to be lending money to those that are already in debt, therefore making even more money off them........isn't that nice of them[/p][/quote]Your not The sharpest tool in the box then are you ?Steven11

Dilligaf2010 wrote:
So the retailers, who are responsible for a large percentage of people's debts, are going to be lending money to those that are already in debt, therefore making even more money off them........isn't that nice of them

Your not The sharpest tool in the box then are you ?

Neither are you, it's "you're".

[quote][p][bold]Steven11[/bold] wrote:
[quote][p][bold]Dilligaf2010[/bold] wrote:
So the retailers, who are responsible for a large percentage of people's debts, are going to be lending money to those that are already in debt, therefore making even more money off them........isn't that nice of them[/p][/quote]Your not The sharpest tool in the box then are you ?[/p][/quote]Neither are you, it's "you're".breamoreboy

It appears as though some people don't understand the point I'm trying to make.
I know all about pay-day loan companies, and credit unions, I also know a fair amount about debt, although I'm solvent.
How can I make myself more easily understood, without drawing pictures?
.............Retaile
rs offer people credit, usually in the form of store cards, and of course because of interest charges you pay back more than you borrow, so the retailers are making money from the people they've given credit to.
.............When people are struggling financially (they don't have enough money), this is usually because they have too much on credit.
.............These people will normally try to borrow some more money from somebody.
.............The article is about retailers starting a credit union, to lend money to people, at a lower interest rate than pay-day loan companies, so the people they are very likely to be lending money to, are the people who already owe them money.........
.............In the example given, as pointed out by somebody already, a credit union would charge about £8 interest over 30 days, on a £400 loan..
.............Now if the credit union that was making the £8 interest is the one set up by the retailers...........
...IT MEANS THE RETAILERS ARE MAKING MONEY OFF PEOPLE WHO ARE PROBABLY ALREADY IN DEBT TO THEM.
I hope I've made myself a little easier to understand.
.......To the individual that thinks I'm not the sharpest tool in the box, you're obviously extremely blunt, and probably snapped.

It appears as though some people don't understand the point I'm trying to make.
I know all about pay-day loan companies, and credit unions, I also know a fair amount about debt, although I'm solvent.
How can I make myself more easily understood, without drawing pictures?
.............Retaile
rs offer people credit, usually in the form of store cards, and of course because of interest charges you pay back more than you borrow, so the retailers are making money from the people they've given credit to.
.............When people are struggling financially (they don't have enough money), this is usually because they have too much on credit.
.............These people will normally try to borrow some more money from somebody.
.............The article is about retailers starting a credit union, to lend money to people, at a lower interest rate than pay-day loan companies, so the people they are very likely to be lending money to, are the people who already owe them money.........
.............In the example given, as pointed out by somebody already, a credit union would charge about £8 interest over 30 days, on a £400 loan..
.............Now if the credit union that was making the £8 interest is the one set up by the retailers...........
...IT MEANS THE RETAILERS ARE MAKING MONEY OFF PEOPLE WHO ARE PROBABLY ALREADY IN DEBT TO THEM.
I hope I've made myself a little easier to understand.
.......To the individual that thinks I'm not the sharpest tool in the box, you're obviously extremely blunt, and probably snapped.Dilligaf2010

Dilligaf2010 wrote:
It appears as though some people don't understand the point I'm trying to make.
I know all about pay-day loan companies, and credit unions, I also know a fair amount about debt, although I'm solvent.
How can I make myself more easily understood, without drawing pictures?
.............Retaile

rs offer people credit, usually in the form of store cards, and of course because of interest charges you pay back more than you borrow, so the retailers are making money from the people they've given credit to.
.............When people are struggling financially (they don't have enough money), this is usually because they have too much on credit.
.............These people will normally try to borrow some more money from somebody.
.............The article is about retailers starting a credit union, to lend money to people, at a lower interest rate than pay-day loan companies, so the people they are very likely to be lending money to, are the people who already owe them money.........
.............In the example given, as pointed out by somebody already, a credit union would charge about £8 interest over 30 days, on a £400 loan..
.............Now if the credit union that was making the £8 interest is the one set up by the retailers...........

...IT MEANS THE RETAILERS ARE MAKING MONEY OFF PEOPLE WHO ARE PROBABLY ALREADY IN DEBT TO THEM.
I hope I've made myself a little easier to understand.
.......To the individual that thinks I'm not the sharpest tool in the box, you're obviously extremely blunt, and probably snapped.

Sorry I do apologise to you , I did not quite comprehend your meaning .

[quote][p][bold]Dilligaf2010[/bold] wrote:
It appears as though some people don't understand the point I'm trying to make.
I know all about pay-day loan companies, and credit unions, I also know a fair amount about debt, although I'm solvent.
How can I make myself more easily understood, without drawing pictures?
.............Retaile
rs offer people credit, usually in the form of store cards, and of course because of interest charges you pay back more than you borrow, so the retailers are making money from the people they've given credit to.
.............When people are struggling financially (they don't have enough money), this is usually because they have too much on credit.
.............These people will normally try to borrow some more money from somebody.
.............The article is about retailers starting a credit union, to lend money to people, at a lower interest rate than pay-day loan companies, so the people they are very likely to be lending money to, are the people who already owe them money.........
.............In the example given, as pointed out by somebody already, a credit union would charge about £8 interest over 30 days, on a £400 loan..
.............Now if the credit union that was making the £8 interest is the one set up by the retailers...........
...IT MEANS THE RETAILERS ARE MAKING MONEY OFF PEOPLE WHO ARE PROBABLY ALREADY IN DEBT TO THEM.
I hope I've made myself a little easier to understand.
.......To the individual that thinks I'm not the sharpest tool in the box, you're obviously extremely blunt, and probably snapped.[/p][/quote]Sorry I do apologise to you , I did not quite comprehend your meaning .Steven11

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